ACA Health Premiums May Spike in 2026 as Subsidies Expire

Millions who rely on Affordable Care Act insurance could face serious sticker shock in 2026. A new KFF report finds insurers are eyeing a 15% average premium hike, the biggest jump since 2018. For context, the median increase for 2025 is just 7%.

“Most insurers are proposing premium increases of 10 to 20 percent,” KFF shared, “and more than a quarter are asking for hikes of over 20 percent.” No insurer plans to cut rates next year.

Why the sudden jump? Carriers cite rising medical costs and prescription drug prices. But they’re also bracing for a major policy shift.

“Many insurers cited the likely expiration of enhanced premium tax credits as a reason for increased premiums,” KFF noted.

These subsidies, launched during the pandemic, help keep monthly payments manageable, $113 on average in 2023 compared to $162 in 2020. But they’re set to disappear at the end of this year unless Congress steps in.

If lawmakers stay silent, premiums for those receiving subsidies could spike over 75% in 2026. Insurers say they’d raise rates an extra 4% just to account for the subsidy loss.

Right now, over 22 million of the 24 million ACA enrollees get these subsidies. Without them, many might drop coverage. And with fewer healthy people in the pool, costs could spiral even higher.